“A Budget for all Singaporeans” – that was how Prime Minister Lawrence Wong described Budget 2025, which was announced on 18 Feb 2025. 

This year’s budget comes at a crucial time, against the backdrop of global uncertainties and domestic challenges. Globally, the ongoing US-China trade war and intensifying tech competition are reshaping global supply chains, creating economic uncertainty for open economies like Singapore. Domestically, rising living costs remain a concern, and the government has rolled out targeted support to help individuals and families manage daily expenses.

This budget is also particularly significant—it coincides with Singapore’s 60th year of independence, PM Lawrence Wong’s first budget as Prime Minister, and comes in an election year. There’s a strong emphasis on short-term relief while striking a balance with long-term financial security and economic resilience.

From cash vouchers to CPF changes, upskilling programs, and investment incentives, here are five key takeaways that can directly impact your personal finances in the year ahead.

1. More Vouchers, Handouts, and Rebates to Combat Rising Costs

To help Singaporeans deal with rising prices, temporary relief measures continue to be one of the key pillars of this year’s budget. 

In celebration of Singapore’s 60th anniversary, the government is handing out SG60 vouchers, providing S$600 for all adults aged 21 and above and S$800 for senior citizens aged 60 and above.

For households, all Singaporean households will receive S$800 in CDC vouchers (S$500 in May 2025, S$300 in January 2026) to offset daily expenses. U-save rebates will be doubled to S$760 for eligible HDB households to ease rising utility costs.

Additional support includes an SG60 ActiveSG Top-up of S$100 for all ActiveSG members, an SG Culture Pass of S$100 for all Singaporeans aged 18 and above, as well as Climate Vouchers—S$100 top-up for HDB households (total S$400) and S$400 for private property households.

Full list of Benefits in Singapore Budget 2025

Why it matters: If rising living costs are putting pressure on your finances, these measures will offer some immediate relief. 

However, they are intended as a temporary cushion rather than a long-term solution.  Instead of spending the extra cash from payouts and rebates right away, consider investing it to build future wealth. Thanks to compound interest, even a modest sum—such as S$10K invested at a 10% annualized return—could grow to S$174K over 30 years. Explore Core Equity100 to build your long-term wealth. 

2. More Support for Families Raising Children

Families with children will receive more financial support to help ease the cost of raising them. Parents will receive S$500 LifeSG credits for each child aged 12 and below. For older children, a S$500 Edusave/PSEA top-up will be provided for those aged 13 to 30. Subsidies for preschool and childcare will also continue, making quality education more accessible for parents.

To encourage larger families, the government is offering additional benefits for families with three or more children. The Child Development Account (CDA) First Step Grant will be increased by S$5,000 for each third and subsequent child born from 18 February 2025. Additionally, a Large Family MediSave Grant of S$5,000 will be credited to the mother’s MediSave account for each third and subsequent child.

On top of that, families will receive S$1,000 in LifeSG credits per year for each third and subsequent child, covering the years when the child turns one to six, offering sustained financial relief in the crucial early years.

Source: Singapore Budget 2025, Ministry of Finance, 18 February 2025 

Why it matters: Raising children in Singapore is never an easy task, and these measures provide much-needed financial relief for parents, particularly those with young or multiple children. While these grants and subsidies help ease immediate costs, families should also plan ahead. Consider setting aside these funds in a well-diversified investment such as Core Growth to grow your kids’ education funds.

3. CPF Revisions to Help Older Workers Save More for Retirement

From Jan 1, 2026, the CPF contribution rate for Singaporean and permanent resident workers aged 55 to 65 will increase by 1.5 percentage points. This adjustment is part of ongoing efforts to enhance retirement savings for older workers. The increases will be fully allocated to the Retirement Account(RA) to help senior workers save more for their retirement needs.

Why it matters: If you’re in your 50s or 60s, these changes mean a larger CPF nest egg and potentially better payouts in retirement. 

Another key CPF change is that from the start of 2025, the Special Account (SA) will be closed for those aged 55 and above. This means that any remaining SA savings will be transferred to the RA. Here is a comprehensive guide of the potential impact and how to optimise your CPF funds for retirement. 

4. Upskilling and Career Support for Professionals 

Building upon the foundations laid in Budget 2024, Budget 2025 introduces several key enhancements to workforce development programs. A S$300/month training alliance will now be extended to part-time training for Singaporeans aged 40 and above. 

To encourage employer-led training and job redesign initiatives, New SkillsFuture Workforce Development Grant provides up to 70% funding for job redesign activities and will now function as an online wallet for immediate use. In addition, companies with at least three resident employees will receive a fresh S$10,000 SkillsFuture Enterprise Credit. 

Why it matters: With rapid technological advancements, continuous learning and upskilling are more important than ever. To stay ahead, make the most of the SkillsFuture Level-Up Programme.

If you’re a mid-career professional aged 40 and above, you can tap into S$4,000 in SkillsFuture Credit to enroll in recognised courses, S$3,000/month training allowance for selected full-time courses and S$300/month training allowance for part-time courses.

Consider upskilling in high-demand fields like technology, healthcare, finance, and advanced manufacturing to future-proof your career. Check with your HR for additional training support and subsidies available through your employer.

5. Boosting the Local Stock Market – What Investors Need to Know

Budget 2025 also unveiled a series of tax incentives aimed at revitalizing activity in Singapore’s local stock market. These measures are designed to attract more companies and fund managers to list on the Singapore Exchange (SGX). Key initiatives include tax incentives for new listings and benefits for fund managers who invest a substantial portion of their portfolios in Singapore-listed equities.

Why it matters: If you invest in Singapore equities, this is positive news. These incentives have the potential to drive market growth and improve liquidity, making the market more attractive—particularly to institutional investors. Singapore REITs (S-REITs), one of the key sectors in SGX, are likely to benefit from these measures. Given their currently attractive valuations, this could further boost investor interest in the sector.

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